I think some people are underestimating just how blardy clever some people can be with a tiny amount of money.
My Mum and Dad raised 5 children on the sickness & disability benefit plus a bit of FTB. My dear old Dad became unexpectedly disabled and had no choice but to stop working. My mother needed to be home to care for him + the 5 of us so was unable to work for a time, although she is now working.
They sent us to a private school (albeit with subsidised fees) and fed us a fairly nutritious diet. We didn't have fancy things, but we had EVERYTHING we needed plus a few small wants. They drove an old car, and we lived on the 'wrong' side of town. But we were always clean and tidy, so was our house and garden. And yes, they actually had a small amount of savings.
This was all done on about $22000 in the late 90s early 00s, so not a large amount by any means, especially for a family of 7.
ETA: Mum also sold some craft she made for about $500-1000/year, which she even declared to the ATO because they are such sticklers
So anyway, just making the point that it is absolutely amazing what some clever budgeting can do.